SouthernEra Diamonds signs deal with Haywood Securities for common shares

25 Jul '05

3 min read

Toronto based diamond producer SouthernEra Diamonds Inc announced the entering into of a brokered private placement agreement with Haywood Securities Inc for the sale of 6,800,000 Flow-through Common Shares and 5,000,000 Units for gross proceeds of approx. C$5 million.

The Flow-through Common Shares will be placed at C$0.44 per Flow-through Common Share for gross proceeds of approx. C$3 million. The Units will be placed at C$0.40 per Unit for gross proceeds of C$2 million. Each Unit will consist of one common share and one-half of one common share purchase warrant.

Each whole warrant shall be exercisable to acquire one common share at an exercise price of C$0.65 for a period of 24 months from the closing date, which is expected to be July 28, 2005. SouthernEra has granted Haywood Securities an option, exercisable prior to the closing, to increase the size of the offering by up to approx. C$2 million through the placement of additional Flow-through Common Shares and/or Units (or any combination thereof) under the same terms and conditions.

The proceeds from the placement of the Flow-through Common Shares will be used to advance SouthernEra's Canadian diamond exploration projects. The proceeds from the placement of the Units will be used to advance SouthernEra's international diamond exploration and development projects and for general corporate purposes. The Placement is subject to regulatory acceptance.

SouthernEra Diamonds is Canada's largest fully integrated diamond company with extensive diamond exploration in six countries including Canada, Australia, Gabon, the DRC, Zimbabwe and South Africa. This represents the fourth most active global diamond exploration program after the majors DeBeers, BHPB and Rio Tinto. The Company also operates the Klipspringer Diamond Mine in South Africa and maintains an 18 percent free-carried interest in the Camafuca Diamond Project in Angola.

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